Kim Kardashian has paid the Securities and Exchange Commission $1.26 million to resolve charges stemming from her advocacy of the EthereumMax digital currency.
According to report, the SEC filed charges against the “Keeping Up With the Kardashians” celebrity for failing to disclose the $250,000 payment she received for publishing promotional content about EthereumMax.
Kardashian also pledged to refrain from promoting any cryptocurrency for three years.
Kim Kardashian distributed promotional information to her Instagram followers in 2021. Kardashian has one of the highest social media followings, with 331 million Instagram followers and over 74 million Twitter followers.
On Monday, October 3, the Securities and Exchange Commission (SEC) said that it had charged the reality TV personality and social media influencer “for promoting on social media a crypto asset security, without reporting the cash she got for the promotion.”
Kim was charged by SEC for a cryptocurrency fraud and pay $1.26 million in fines.
Professional boxer Floyd Mayweather Jr. also endorsed EthereumMax, which has no connection to the Ethereum network. Investors in EthereumMax sued both Kardashian and Mayweather in January.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” SEC Chairman Gary Gensler stated in a tweet.